HRA Minutes 08-21-1991
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MINUTES
MONTICELLO HOUSING AND REDEVELOPMENT AUTHORITY
Wednesday, August 21, 1991 - 7:00 PM
City Hall
MEMBERS PRESENT:
Chairperson Al Larson, Ben Smith, Lowell
Schrupp, Everette Ellison, and Tom St.
Hilaire.
STAFF PRESENT:
Ollie Koropchak.
STAFF ABSENT:
Rick Wolfsteller and Jeff O'Neill.
GUEST:
Pat pelstring.
1. CALL TO ORDER.
Chairperson Larson called the HRA meeting to order at 7:02 PM.
2.
CONSIDERATION TO APPROVE THE JUNE 12, 1991 HRA MINUTES.
Tom St. Hilaire made a motion to approve the June 12, 1991 HRA
minutes, seconded by Ben Smith, and without additions or
corrections the minutes were approved as written.
3.
CONSIDERATION TO HEAR TIF ANALYSIS REPORT AS PREPARED BY BDS,
INC.
Pat Pelstring summarized the HRA-TIF Financial Analysis by
stating the report includes the eleven HRA-TIF districts but
doesn't include Aroplax and Shingobee, Inc. Also, the City's
Lincoln Company District is not included.
Each district was analyzed and a cover sheet identifies the
combined revenues of all districts with assumed continued
payment of property taxes. Ten percent of the increment was
set-aside for administrative expenses such as marketing,
ongoing project management, appropriate city staff time, and
other related TIF costs. Additionally, 5% of the increment
was set~aside for bond reserve and no inflationary increases
or accumulated investment earnings were included.
Mr. pelstring concluded that the HRA-TIF status was good with
$1.5 million in available excess increments which could be
utilized to fund additional public improvements, or provide
additional project support. He reminded the HRA to keep an
eye on the over-done Remmele district.
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HRA MINUTES
8-21-91
Mr. Pelstring's recommendations were for the allocation of
administrative expenses, establish a 10% debt service reserve,
negotiate a city loan for lots 6 and 7, and to recognize that
additional development within existing districts may provide
additional excess increment.
The HRA members thanked Mr. Pelstring and recommended the TIF
Financial Analysis be presented to the City Council.
4. CONSIDERATION TO REVIEW DEVELOPMENT AGREEMENT BETWEEN THE HRA
AND SHINGOBEE, INC. AS PREPARED BY ATTORNEY BOB DEIKE.
Tom St. Hilaire made a motion to accept the development
agreement as prepared by Attorney Deike, seconded by Everette
Ellison, and without further discussion the motion passed
unanimously.
5.
CONSIDERATION TO REVIEW PRELIMINARY DRAFT OF THE DEVELOPMENT
AGREEMENT BETWEEN THE HRA AND AROPLAX, INC. AS PREPARED BY
ATTORNEY JOHN DEAN.
Tom st. Hilaire made a motion to accept the preliminary draft
of the development agreement as prepared by Attorney John
Dean, seconded by Everette Ellison, and without further
discussion the motion passed unanimously.
6.
CONSIDERATION TO HEAR OF PROSPECT UPDATE.
Koropchak reported that the OMNI Board approved the SBA
application for Axoplax Corporation, however, the company has
not determined its bank commitment.
G & G Oil Company - this company purchases, refurbishs, and
sales used gasoline dispensers. The company plans are for a
30,000 square foot office/production building on a five acre
parcel. One to two acres would be needed for outdoor storage.
The visitng committee and the IDC both recommended to proceed
with caution and to suggest the use of TIF to control the
potential of unsightly outdoor storage by providing TIF funds
to cover screening plus green planting costs. About 30 jobs
are projected with wages between $6.50 and $12.50. Mr.
Pelstring was familiar with the company and indicated since
than the company since hired a new CEO.
Koropchak prepared a site request proposal for a semi-
conductor company in Oregon looking to employ 1,000 to 2,000
people. Total square footage initially 450,000 sq ft with
completion total of 750,000 sq ft. The requested acreage was
100, the Farm Credit property was marketed.
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HRA MINUTES
8-21-91
7. OTHER BUSINESS.
None.
8. ADJOURNMENT.
Chairperson Larson entertained a motion to adjourn, seconded
by Tom St. Hilaire, the HRA meeting adjourned at 8:00 PM.
Cb~ \<dLL"'T\.iJ~ J
Ollie Koropchak, HRA Executive Director